Why BlackBerry (BBRY) Could Beat Earnings Estimates Again - Tale of the Tape

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Looking for a stock that might be in a good position to beat earnings at its next report? Consider BlackBerry Limited ( BBRY ), a firm in the Wireless Industry, which could be a great candidate for another beat. 

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, BBRY has beaten estimates by at least 55.0% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, BBRY expected to post a loss per share of 56 cents per share, while the company posted loss per share of 8 cents, a significant beat. Meanwhile, for the most recent quarter, the company looked to deliver loss per share of 27 cents, when it actually saw loss per share of 11 cents instead, representing a 59.3% positive surprise.

Thanks in part to this history, estimates have been moving higher for BlackBerry. In fact, the Earnings ESP for BBRY is positive, which is a great sign of a coming beat.

After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company's earnings prospects. This is the case for BBRY, as the firm currently has a Zacks Earnings ESP of 59.9 %, so another beat could be around the corner.

This is particularly true when you consider that BBRY has a great Zacks Rank #2 (Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. And when you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that BBRY could see another beat at its next report, especially if recent trends are any guide.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Earnings , Investing Ideas , Stocks

Referenced Stocks: BBRY

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